A) ACCOUNTING CONVENTION :
 
 The financial statements have been prepared in accordance with the
 accounting principles generally accepted in India (Indian GAAP) and
 comply with the Companies (Accounting Standards) Rules, 2006 (as
 amended) issued by the Central Government and relevant provisions of
 Companies Act, 1956 and are based on the historical cost convention as
 modified to include the revaluation of certain fixed assets.
 
 B) USE OF ESTIMATES :
 
 Preparation of financial statements in confirmity with the generally
 accepted accounting principles require management to make estimates and
 assumptions that affect the reported amounts of assets and liabilities
 on the date of the financial statements and the reported amount of
 revenues and expenses during the reporting period. Difference between
 the actual result and estimates, are recognised in the period in which
 the results are known/materialised.
 
 C) REVENUE RECOGNITION : 
 
 i) SALES:
 
 a) Revenue is recognised when it is earned and no significant
 uncertainty exists as to its realisation or collection.  Revenue from
 sale of goods is recognised on delivery of the products, when all
 significant contractual obligations have been satisfied, the property
 in the goods is transferred for a price, significant risks and rewards
 of ownership are transferred to the customers and no effective
 ownership is retained.
 
 b) Sales is inclusive of Excise, Export Incentives/ Licences & Forward
 Exchange Contracts and exclusive of Trade discount and VAT/Sales Tax.
 
 c) Excise duty paid for captive consumption of goods, where cenvat
 credit is not available, is shown as excise expenses.
 
 ii) DIVIDEND INCOME :
 
 Dividend income from Investment is accounted for when the right to
 receive is established.
 
 iii) INTEREST INCOME :
 
 Interest income is recognised on time proportion basis taking into
 account the amount outstanding and the rate applicable.
 
 D) FIXED ASSETS, DEPRECIATION AND EXPENDITURE DURING CONSTRUCTION
 PERIOD :
 
 i) Fixed assets are stated at cost of acquisition & installation, net
 of cenvat and VAT credits availed ,if any, and includes amount added on
 revaluation less accumulated depreciation and impairment loss, if any.
 Borrowing costs incurred during the period of construction/ acquisition
 of assets are added to the cost of Fixed Assets.  Major expenses on
 modification /alterations increasing efficiency/capacity of the plant
 are also capitalised.Exchange differences arising out of fluctuations
 in exchange rate on settlement/period end in long term foreign currency
 monetary liabilities used for acquisition of fixed assets are adjusted
 to the cost of the fixed assets and depreciated over the remaining
 useful life of the asset.
 
 Critical spares are capitalised as a part of Fixed Assets, depriciation
 on the same is provided over useful life of Fixed Assets.
 
 ii) Free hold Land, Building and Plant & Machineries of Ice Cream
 Plant, Ahmedabad and Agri. Foods plant, Dharampur have been revalued as
 on 31st March 2000 and are shown at the value approved by an external
 valuer, using replacement basis policy.
 
 The net increase due to revaluation of such assets of Rs. 669.82 lacs
 (Previous year Rs. 669.82 lacs) is transferred to revaluation reserve
 account which stands reduced to Rs. 81.93 lacs as at 31st March 2011
 (Previous year Rs. 102.50 lacs) after charging incremental depreciation
 and adjustment for disposal/inter unit transfer during the last eleven
 years. The revalued amount of Rs. 2296.94 lacs (Previous year Rs.
 2296.94 lacs) stands substituted for historical cost of Rs. 1422.77lacs
 (Previous year Rs. 1422.77 lacs) in the gross block of fixed assets.
 
 iii) a) Depreciation on fixed assets is provided on Straight Line
 Method at the rates and in the manner prescribed in Schedule XIV of the
 Companies Act 1956, ( as amended ).
 
 b) On revalued assets, depreciation is provided on the estimate of the
 remaining useful life of such assets.
 
 c) Premium paid for lease hold land is amortised over the residuary
 lease period.
 
 d) In respect of major alterations/modifications forming an integral
 part of existing assets, depreciation is provided at the rate arrived
 on the basis of useful life of such assets after such alterations/
 modifications or at the rate prescribed under schedule XIV, whichever
 is higher on the total value of such assets.
 
 iv) IMPAIRMENT OF ASSETS :
 
 The carrying amount of assets is reviewed at each balance sheet date
 for any indication of impairment based on internal/external factors. An
 impairment loss is recognised wherever the carrying amount of fixed
 assets exceeds its recoverable amount. The recoverable amount is
 measured as the higher of the net selling price and the value in use
 determined by the present value of estimated future cash flows.
 
 E) INVESTMENTS :
 
 Investments are classified into current and long term investments. Long
 term investments are carried at cost.  A provision for diminution in
 value of long term investments is made for each investment individually
 ,if such decline is other than temporary. Current investments are
 stated at the lower of cost and fair value, computed category wise.
 
 F) INVENTORIES :
 
 Inventories are valued as under:
 
 i) RAW MATERIALS, PACKING   Valued at lower of cost or net realisable
                             value and for this purpose
 
 MATERIALS AND STORES        cost is determined on weighted average 
 & SPARES.                   basis. Due provision for obsolescence 
                             is made.
 
 ii) FINISHED GOODS          At cost or net realisable value, whichever
                             is lower. Cost is determined on absorption
                             basis. Due provision for obsolescence 
                             is made.
 
 G) EMPLOYEE BENEFITS :
 
 a) Short Term Employee Benefits :
 
 All employee benefits payable wholly within twelve months of rendering
 the service are classified as short term employee benefits. Benefits
 such as salaries, wages, short term compensated absences, etc. and the
 expected cost of bonus, ex-gratia are recognised in the period in which
 the employee renders the related service.
 
 b) Post-Employment Benefits : 
 
 (i) Defined Contribution Plans:
 
 State Governed provident fund scheme and employees state insurance
 scheme are defined contribution Plans. The contribution paid / payable
 under the schemes is recognised during the period in which the
 employees renders the related services.
 
 (ii) Defined Benefit Plans :
 
 The employee''s gratuity fund scheme and compensated absences is
 company''s defined benefit plans.
 
 The present value of the obligation under such defined benefit plan is
 determined based on actuarial valuation using the projected Unit Credit
 Method, Which recognises each period of service as giving rise to
 additional unit of employee benefits entitlement and measures each unit
 separately to build up the final obligation.
 
 The obligation is measured at the present value of the estimated future
 cash flows. The discount rates used for determining the present value
 of the obligation under defined benefit plans, is based on the market
 yields on Government Securities as at the balance sheet date, having
 maturity periods approximating to the terms of related obligations.
 
 Acturial gains and losses are recognised immediately in the profit and
 loss account.
 
 In case of funded plans, the fair value of the plan assets is reduced
 from the gross obligations under the defined benefit plans, to
 recoginse the obligation on net basis.
 
 Gains or losses on the curtailment or settlement of any defined
 benefits plans are recoginsed when the curtailment or settlement
 occurs. Past service cost is recognised as expense on a straight-line
 basis over the average period until the benefits become vested.
 
 c) Long term employee benefits :
 
 The obligation for long term employee benefits such as long term
 compensated absences, is recognised in the same manner as in case of
 defined benefit plans as mentioned in b) ii) above.
 
 H) BORROWING COSTS :
 
 i) Borrowing costs whether specific or general, utilized for
 acquisition, construction or production of qualifying assets are
 capitalised as part of cost of such assets till the activities
 necessary for its intended use are complete. General borrowing costs
 are capitalised at the weighted average of such borrowings outstanding
 during the year. All other borrowing costs are charged in statement of
 profit & loss of the year in which incurred.
 
 ii) Ancilliary cost incurred in connection with term loan borrowings is
 amortised over the period of term loan.
 
 I) TAXES ON INCOME :
 
 a) Current tax is determined as the amount of tax payable in respect of
 taxable income for the year. Deferred tax is recognised, on timing
 difference, being the difference between taxable income and accounting
 income that originate in one period and are capable of reversal in one
 or more subsequent periods. Where there is unabsorbed depreciation or
 carry forward losses, deferred tax assets are recognised only if there
 is virtual certainty that sufficient future taxable income will be
 available against which such assets can be realised. Other deferred tax
 assets are recognised only to the extent there is reasonable certainty
 of realisation in future. Such assets are reviewed at each balance
 sheet date to reassess realisation.
 
 b) MAT Credit Entitlement
 
 MAT credit is recognised as an asset only when there is convincing
 evidence that the company will pay normal income tax within the
 specified period. The asset shall be reviewed at each balance sheet
 date.
 
 J) FOREIGN CURRENCY TRANSACTIONS :
 
 i) Transactions denominated in foreign currencies are normally recorded
 at the exchange rate prevailing at the time of the transaction.
 
 ii) Monetary items denominated in foreign currency at the year end are
 translated at the exchange rates prevailing at the balance sheet date.
 
 iii) Exchange differences,in respect of accounting periods commencing
 on or after 7th December, 2006 arising on reporting of long-term
 foreign currency monetary items at rates different from those at which
 they were initially recorded during the period, or reported in previous
 financial statements, in so far as they relate to the acquisition of a
 depreciable capital asset, are added to or deducted from the cost of
 the asset and are depreciated over the remaining useful life of the
 asset, and in other cases are accumulated in a Foreign currency
 Monetary item Translation Difference Account in the company''s
 financial statements and amortised Account in the company''s financial
 statements and amortised over the balance period of such long term
 asset/liability but not beyond accounting period ending on or before
 31st March, 2012.
 
 iv) Premium or discount arising at the inception of the forward
 exchange contract is amortised as income or expense over the period of
 the contract. Any profit or loss arising in renewal or cancellation of
 forward exchange contracts is recognised as income or expense during
 the year.
 
 v) Any income or expense on account of exchange difference either on
 settlement or on translation is recognised in the profit and loss
 account.
 
 vi) Losses in respect of all outstanding derivative contracts at the
 balance sheet date is provided by marking them to market.
 
 K) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS :
 
 Provisions are recognised when the company has a present obligation as
 a result of past events, for which it is probable that an outflow of
 resources embodying economic benefits will be required to settle the
 obligation and a reliable estimate can be made for the amount of the
 obligation.
 
 Contingent Liabilities are disclosed by way of notes to financial
 statements.
 
 Contingent Assets are neither recognised nor disclosed in the financial
 statements.
 
 Provisions, contingent liabilities and contingent assets are reviewed
 at each balance sheet date.
 
 L) CONTINGENCIES AND EVENTS OCCURRING AFTER THE BALANCE SHEET DATE :
 
 All contingencies and events occurring after the balance sheet date
 which have a material effect on the financial position of the company
 are considered for preparing the financial statements.
 
 M) ACCOUNTING FOR GOVERNMENT GRANTS :
 
 i) Government grants in the form of promoters contribution is treated
 as capital receipt and credited to capital reserve.
 
 ii) Grant in the form of revenue subsidy is treated as revenue receipt
 and credited to  Sales  in profit and loss account. However, from
 2007-08, specific grants (Transport subsidy from APEDA) is deducted
 from the freight expenses.  
 
 iii) Grant towards specific fixed assets was presented as deduction
 from its gross value up to 31.03.2005 and there after the same is
 presented by credit to Deferred Government grant and amortised over the
 period of useful life of specific fixed assets.
 
 N) RESEARCH AND DEVELOPMENT EXPENSES :
 
 Expenditure relating to capital items is debited to Fixed Assets and
 depreciated at applicable rates. Revenue expenditure is charged to
 Profit and Loss Account of the period in which they are incurred.
 
 O) MISCELLANEOUS EXPENDITURE :
 
 Upfront interest paid on restructuring of term loans is amortised over
 the tenure of such loans.